Please note: The information below is for U.S.-based institutional clients. Individual U.S. clients with questions about ECP self-certification should review the information available here.
The term “Eligible Contract Participant” or “ECP” is defined in Section 1a(18) of the Commodity Exchange Act and related guidance. A key way for institutions to qualify is to have more than $10 million in total assets. This test focuses on gross assets, not net assets (assets minus liabilities).
If your institution doesn’t qualify as an ECP under the $10 million in total assets test, your institution may qualify as an ECP under one of the other categories of the ECP definition. Please review categories 1-19 in Table 1 below if your institution acts for its own account (that is, as principal and not for other institutions or individuals). If your institution acts for others, please see Table 2 below. If your institution qualifies under one of these other categories, please contact Kraken support.
Please note that this information is provided to you only as a guide. If you have any questions about whether your institution qualifies as an ECP, you should consult your institution’s legal advisor.
Under the Terms of Service, the institution you represent is required to provide accurate and truthful information and promptly update its Kraken Account information. If you certify on behalf of your institution that the institution is an ECP and your institution’s status changes, the institution must notify Kraken promptly.
Table 1 – Acting for Own Account (if the institution you represent is within at least one of the categories below, your institution qualifies as an ECP)
Financial Institution
: A corporation operating under the fifth undesignated paragraph of section 25 of the Federal Reserve Act (12 U.S.C. 603), commonly known as “an agreement corporation”;
Financial Institution
: A corporation organized under section 25A of the Federal Reserve Act (12 U.S.C. 611 et seq.), commonly known as an “Edge Act corporation”;
Financial Institution
: An institution that is regulated by the Farm Credit Administration;
Financial Institution
: A Federal credit union or State credit union (as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752));
Financial Institution
: A depository institution (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813));
Financial Institution
: A foreign bank or a branch or agency of a foreign bank (each as defined in section 1(b) of the International Banking Act of 1978 (12 U.S.C. 3101(b)));
Financial Institution
: Any financial holding company (as defined in section 2 of the Bank Holding Company Act of 1956);
Financial Institution
: A trust company;
Financial Institution
: A similarly regulated subsidiary or affiliate of an entity described in any of categories (1) through (8) of this Table 1;
Insurance Company
: An insurance company that is regulated by a State, or that is regulated by a foreign government and is subject to comparable regulation as determined by the Commodity Futures Trading Commission, including a regulated subsidiary or affiliate of such an insurance company;
Investment Company
: An investment company subject to regulation under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.) or a foreign person performing a similar role or function subject as such to foreign regulation (regardless of whether each investor in the investment company or the foreign person is itself an eligible contract participant);
Commodity Pool:
A commodity pool that: (I) has total assets exceeding $5,000,000; and (II) is formed and operated by a person subject to regulation under the Commodity Exchange Act or a foreign person performing a similar role or function subject as such to foreign regulation (regardless of whether each investor in the commodity pool or the foreign person is itself an eligible contract participant) provided, however, that for purposes of section 2(c)(2)(B)(vi) and section 2(c)(2)(C)(vii) of the Commodity Exchange Act, the term “eligible contract participant” shall not include a commodity pool in which any participant is not otherwise an eligible contract participant;
Commodity Pool
: A commodity pool that: (I) has total assets exceeding $10,000,000; and (II) is not formed for the purpose of evading regulation under Section 2(c)(2)(B) or Section 2(c)(2)(C) of the Commodity Exchange Act or related Commodity Futures Trading Commission rules, regulations or orders; and (III) is formed and operated by a registered commodity pool operator or by a commodity pool operator who is exempt therefrom pursuant to § 4.13(a)(3) under the rules of the Commodity Futures Trading Commission;
General Qualified Business Entity
: A corporation, partnership, proprietorship, organization, trust, or other entity— (I) that has total assets exceeding $10,000,000; (II) the obligations of which under an agreement, contract, or transaction are guaranteed or otherwise supported by a letter of credit or keepwell, support, or other agreement by an entity described in subclause (I) above, in categories (1) through (13), or (16) of this Table 1, or any other person that the Commodity Futures Trading Commission determines to be eligible in light of the financial or other qualifications of the person; or (III) that—(aa) has a net worth exceeding $1,000,000; and (bb) enters into an agreement, contract, or transaction in connection with the conduct of the entity‘s business or to manage the risk associated with an asset or liability owned or incurred or reasonably likely to be owned or incurred by the entity in the conduct of the entity‘s business;
Employee Benefit Plan
: An employee benefit plan subject to the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.), a governmental employee benefit plan, or a foreign person performing a similar role or function subject as such to foreign regulation—(I) that has total assets exceeding $5,000,000; or (II) the investment decisions of which are made by—(aa) an investment adviser or commodity trading advisor subject to regulation under the Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) or the Commodity Exchange Act; (bb) a foreign person performing a similar role or function subject as such to foreign regulation; (cc) a financial institution; or (dd) an insurance company described in category (10) of this Table 1, or a regulated subsidiary or affiliate of such an insurance company;
Governmental Entity
: (I) a governmental entity (including the United States, a State, or a foreign government) or political subdivision of a governmental entity; (II) a multinational or supranational government entity; or (III) an instrumentality, agency, or department of an entity described in subclause (I) or (II) above; except that such term does not include an entity, instrumentality, agency, or department referred to in subclause (I) or (III) above unless: (aa) the entity, instrumentality, agency, or department is a person that (x) has a demonstrable ability, directly or through separate contractual arrangements, to make or take delivery of the underlying commodity; (y) incurs risks, in addition to price risk, related to the commodity; or (z) is a dealer that regularly provides risk management or hedging services to, or engages in market-making activities with, the foregoing entities involving transactions to purchase or sell the commodity or derivative agreements, contracts, or transactions in the commodity; (bb) the entity, instrumentality, agency, or department owns and invests on a discretionary basis $50,000,000 or more in investments; or (cc) the agreement, contract, or transaction is offered by, and entered into with, an entity that is listed in any of subclauses (I) through (VI) of section 2(c)(2)(B)(ii) of the Commodity Exchange Act;
An SEC Broker-Dealer and Certain Other Persons
: (I) A broker or dealer subject to regulation under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) or a foreign person performing a similar role or function subject as such to foreign regulation, except that, if the broker or dealer or foreign person is a natural person or proprietorship, the broker or dealer or foreign person shall not be considered to be an eligible contract participant unless the broker or dealer or foreign person also meets the requirements of categories (14) or (20) in this Table 1; (II) an associated person of a registered broker or dealer concerning the financial or securities activities of which the registered person makes and keeps records under section 15C(b) or 17(h) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–5(b), 78q(h)); or (III) an investment bank holding company (as defined in section 17(i) of the Securities Exchange Act of 1934 (15 U.S.C. 78q(i));
Futures Commission Merchant
: A futures commission merchant subject to regulation under the Commodity Exchange Act or a foreign person performing a similar role or function subject as such to foreign regulation, except that, if the futures commission merchant or foreign person is a natural person or proprietorship, the futures commission merchant or foreign person shall not be considered to be an eligible contract participant unless the futures commission merchant or foreign person also meets the requirements of categories (14) or (20) of this Table 1;
Floor Broker or Trader
: A floor broker or floor trader subject to regulation under the Commodity Exchange Act in connection with any transaction that takes place on or through the facilities of a registered entity (other than an electronic trading facility with respect to a significant price discovery contract) or an exempt board of trade, or any affiliate thereof, on which such person regularly trades; or
Qualified Individual
: An individual who has amounts invested on a discretionary basis, the aggregate of which is in excess of— (I) $10,000,000; or (II) $5,000,000 and who enters into the agreement, contract, or transaction in order to manage the risk associated with an asset owned or liability incurred, or reasonably likely to be owned or incurred, by the individual.
Table 2 – Acting for Another Person’s Account (if the institution you represent is within the following category below, your institution qualifies as an ECP)
Registered Intermediary Acting for Other Qualified ECPs: (i) a person described in categories (1) through (10), (12), (13), (14), (18), or (19) of Table 1, acting as broker or performing an equivalent agency function on behalf of another person described in Table 1; or (ii) an investment adviser subject to regulation under the Investment Advisers Act of 1940, a commodity trading advisor subject to regulation under the Commodity Exchange Act, a foreign person performing a similar role or function subject as such to foreign regulation, or a person described in categories (1) through (10), (12), (13), (14), (18), or (19) of Table 1, in any such case acting as investment manager or fiduciary (but excluding a person acting as broker or performing an equivalent agency function) for another person described in Table 1 and who is authorized by such person to commit such person to the transaction.